China planned to invest $100bn (£54bn) in Latin America over the next decade.
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Bear Stearns raises Brazil stocks to "overweight"
São Paulo, Nov 16 - Bear Stearns has raised its allocation on Brazilian stocks to "overweight" from "market weight."
In a report Tuesday, the U.S. investment bank noted that it will be relatively easier for Brazil to meet its financing needs in 2005 than it has been in 2004.
Brazil needs to finance $30 billion in 2005, compared with $45 billion in 2004.
"Of course, a lower net external financing gap in 2005 does not ensure that the gap will, in fact, be financed without a negative adjustment to the Real or a rise in local interest rates, since global conditions that determine cross-border capital flows may shift in adverse fashion for several reasons," Bear Stearns said, adding, however, that "equal weight must be given to possible global conditions in 2005 that may be helpful, such as a weaker U.S. dollar and lower global oil prices, all else equal."
The U.S. bank said that China will certainly play a positive role in making sure that Brazil easily fills its financing gap, "both through enhanced commercial commodity trade and through capital flows from China to Brazil."
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